NEW YORK CITY, March 19, 2012 — /PRNewswire-iReach/ -- 4AutoInsuranceQuote.org, an insurance quote provider out of Manhattan, NY, released a new study on how income levels affect automobile insurance premiums. This study, which was released in early March, shows that the rich pay much less for car insurance than low-income individuals. For the same amount of insurance coverage, the study shows, poor people will pay over $1000 more annually than those individuals in the middle and upper classes. This cost disparity, 4AutoInsuranceQuote.org says is "unfair" and "borderline illegal".
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There are many factors that can play a role in determining the rates one will pay for insurance coverage, 4AutoInsuranceQuote.org says. Automobile type, credit score, driving history, vehicle history, age, and gender are things that most, if not all, insurers will look at. The study shows, however, that income levels are playing an increasingly larger role in this equation.
Even though insurers are not allowed by law to use one's race or income in determining how much they will pay for insurance, the study claims that insurance companies are using loopholes to work their way around this legislation.
To give an example of these "loopholes" the insurance companies use, 4AutoInsuranceQuote.org says that insurance companies will use education level as determinant. Poor people tend to have lower education levels, therefore, they will be charged more for car insurance. The study also points out that insurance companies tend to charge higher insurance rates to individuals who live in areas with high African-American or Latino populations. It is illegal for insurance companies to use one's race as a factor in determining premiums, so they will claim that they are charging higher rates due to the fact that they live in a high-crime area.
"It's both unfortunate and sad that low-income individuals are subject to higher insurance rates," 4AutoInsuranceQuote.org spokesperson James Shaffer says, "what these companies are doing is illegal, amoral, and it not only hurts their customers, it hurts their (company) reputations as well."
4AutoInsuranceQuote.org says that discrimination in the insurance industry is illegal. This act, commonly known as "redlining," refers to the process of refusing insurance coverage to an individual based upon the area they live in. Redlining, which is illegal in the United States, is still being practiced by many auto insurance companies, 4AutoInsuranceQuote.org says. Although insurance companies will not flat-out tell poor people that they cannot be covered, they will charge them incredibly high prices that they simply cannot afford. This, Mr. Shaffer says, "is pretty much the exact same thing as refusing to cover these individuals."
Offering free auto insurance quotes and an insurance calcuator to United States customers, 4AutoInsuranceQuote.org also releases studies on the automobile and insurance industries. Recent studies published by them include "Texting While Driving Leads To Increased Insurance Rates", "Machine Vision And Its Effect On The Auto Industry", "The Ten Best Auto Insurance Companies", and "Alcohol Related Traffic Deaths In US Cities." In business since 2008, 4AutoInsuranceQuote.org's goal is to become the top insurance quote provider in the United States.
Media Contact: James Shaffer of 4 Auto Insurance Quote, 4015807272, webmaster@4autoinsurancequote.org
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SOURCE 4 Auto Insurance Quote
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